[Code of Federal Regulations]
[Title 12, Volume 6]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR707.5]

[Page 382]
 
                       TITLE 12--BANKS AND BANKING
 
            CHAPTER VII--NATIONAL CREDIT UNION ADMINISTRATION
 
PART 707--TRUTH IN SAVINGS--Table of Contents
 
Sec. 707.5  Subsequent disclosures.

    (a) Change in terms--(1) Advance notice required. A credit union 
shall give advance notice to affected members of any change in a term 
required to be disclosed under Sec. 707.4(b), if the change may reduce 
the annual percentage yield or adversely affect the member. The notice 
shall include the effective date of the change. The notice shall be 
mailed or delivered at least 30 calendar days before the effective date 
of the change.
    (2) No notice required. No notice under this section is required 
for:
    (i) Variable-rate changes. Changes in the dividend rate and 
corresponding changes in the annual percentage yield in variable-rate 
accounts.
    (ii) Share draft and check printing fees. Changes in fees for check 
printing.
    (iii) Short-term term share accounts. Changes in any term for term 
share accounts with maturities of one month or less.
    (b) Notice before maturity for term share accounts longer than one 
month that renew automatically. For term share accounts with a maturity 
longer than one month that renew automatically at maturity, credit 
unions shall provide the disclosures described below before maturity. 
The disclosures shall be mailed or delivered at least 30 calendar days 
before maturity of the existing account. Alternatively, the disclosures 
may be mailed or delivered at least 20 calendar days before the end of 
the grace period on the existing account, provided a grace period of at 
least five calendar days is allowed.
    (1) Maturities of longer than one year. If the maturity is longer 
than one year, the credit union shall provide account disclosures set 
forth in Sec. 707.4(b) for the new account, along with the date the 
existing account matures. If the dividend rate and annual percentage 
yield that will be paid for the new account are unknown when disclosures 
are provided, the credit union shall state that those rates have not yet 
been determined, the date when they will be determined, and a telephone 
number members may call to obtain the dividend rate and the annual 
percentage yield that will be paid for the new account.
    (2) Maturities of one year or less but longer than one month. If the 
maturity is one year or less but longer than one month, the credit union 
shall either:
    (i) Provide disclosures as set forth in paragraph (b)(1) of this 
section; or
    (ii) Disclose to the member:
    (A) The date the existing account matures and the new maturity date 
if the account is renewed;
    (B) The dividend rate and the annual percentage yield for the new 
account if they are known (or that those rates have not yet been 
determined, the date when they will be determined, and a telephone 
number the member may call to obtain the dividend rate and the annual 
percentage yield that will be paid for the new account); and
    (C) Any difference in the terms of the new account as compared to 
the terms required to be disclosed under Sec. 707.4(b) for the existing 
account.
    (c) Notice before maturity for term share accounts longer than one 
year that do not renew automatically. For term share accounts with a 
maturity longer than one year that do not renew automatically at 
maturity, credit unions shall disclose to members the maturity date and 
whether dividends will be paid after maturity. The disclosures shall be 
mailed or delivered at least 10 calendar days before maturity of the 
existing account.

(Approved by the Office of Management and Budget under control number 
3133-0134)

[58 FR 50445, Sept. 27, 1993, as amended at 61 FR 114, Jan. 3, 1996; 63 
FR 71574, Dec. 29, 1998]